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Note: Intersections utilize a 0.30 g/t Au cut-off allowing a maximum 1.0 m dilution. All above intersections are in weathered oxide zone. True widths are not known at this time. The following are azimuth (degrees)/dip (degrees)/total depth (metres) of the drill holes listed above: FCM-13: 290/-60/73.0; FMG-05: 90/-85/102.0; FMG-07: 290/-55/81.2
Rovina Valley Project, Romania:
-- Completed 5,290 metres of resource definition drilling, 7,837 metres of exploration and satellite target drilling, predominantly at the Ciresata porphyry and 915 metres of geotechnical drilling to complete drill programs initiated in 2011. A total of 305 diamond drill holes have been completed on the project for a total of 136,705 metres.-- Announced a resource update on July 17, 2012, which increased the previous measured plus indicated gold resource category by 134% to 7.19 million ounces and increased the measured plus indicated copper resource by 84% to 1.420 billion pounds of copper. In addition, the measured plus indicated gold resource grade increased by 12.2 % from the previous resource and the tonnage by 110%. The 2012 resource update is shown below.----------------------------------------------------------------------------Resource Tonnage Au Cu Gold Copper Au eq(i)Category (MM t) (g/t) (%) (MM oz) (MM lbs) (MM oz)----------------------------------------------------------------------------Measured Rovina (open-pit) 31.8 0.36 0.30 0.37 209.0 0.91 Colnic (open-pit) 29.4 0.64 0.12 0.61 75.0 0.80Ciresata (underground) 29.7 0.86 0.16 0.82 105.0 1.09Total Measured 90.9 0.62 0.19 1.81 389.0 2.80Indicated Rovina (open-pit) 73.5 0.27 0.23 0.64 370.0 1.59 Colnic (open-pit) 106.3 0.47 0.10 1.59 226.0 2.18Ciresata (underground) 135.1 0.72 0.15 3.15 435.0 4.26Total Indicated 315.0 0.53 0.15 5.38 1,031.0 8.03---------------------------------------------------------------------------- Total Measured + Indicated 405.9 0.55 0.16 7.19 1,420.0 10.84----------------------------------------------------------------------------Comparison to 2008 Resource Estimate +110% +12.2% -11.1% +134% +87% +113%--------------------------------------------------------------------------------------------------------------------------------------------------------Resource Tonnage Au Cu Gold Copper Au eq(i)Category (MM t) (g/t) (%) (MM oz) (MM lbs) (MM oz)----------------------------------------------------------------------------Inferred Rovina (open-pit) 13.4 0.19 0.20 0.08 60.0 0.24 Colnic (open-pit) 3.8 0.32 0.10 0.04 8.0 0.06Ciresata (underground) 9.6 0.67 0.14 0.21 29.0 0.28 Total Inferred 26.8 0.38 0.16 0.33 97.0 0.58----------------------------------------------------------------------------Comparison to 2008 Resource Estimate -85% -43.7% -3.1% -92% -85% -90%----------------------------------------------------------------------------- (i)Au eq. determined by using a gold price of US$1,370 per ounce and a copper price of US3.52/lb. These prices are the 3-year trailing average as of July 10th, 2012. Metallurgical recoveries are not taken into account for Au eq.- Base case cut-offs used in the table are 0.35 g/t Au eq. for the Colnic deposit and 0.25% Cu eq for the Rovina deposit, both of which are amenable to open pit mining and 0.65 g/t Au eq for the Ciresata deposit which is amenable to underground bulk mining.- For the Rovina and Colnic porphyries, the resource is an in-pit resource derived from a Whittle shell model using gross metal values of $1,350/oz Au price and $3.00/lb Cu price, net of payable amounts after smelter charges and royalty for net values of US$1,313/oz Au and US$2.57/lb Cu for Rovina and US$2.27/Ib Cu for Colnic).- Rounding of tonnes as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.-- The final Rovina Valley Exploration report and full documentation of a mining study was submitted to the National Agency of Mineral resources ("NAMR") for the conversion of the Rovina Valley Exploration License to a Mining License. This study was completed by a consortium of Romanian certified consultants and included resource-reserve assessments, mining and processing evaluations, environmental-social baseline and impact risk assessments, health and safety evaluations and closure plans. The conversion to a Mining License is not expected before mid-year 2013.-- A consortium of well-known engineering groups and specialists, led by AGP Mining Consultants Inc. ("AGP") performed worked for a Pre- Feasibility study for the project during 2012. The Pre-Feasibility study contemplates a 45,000 t/d mining operation from two open pits and one underground mine, utilizing a standard copper flotation processing facility. It is expected that the results from this study will be released by the end of Q1, 2013.Corporate:-- The Corporation arranged with Macquarie Bank to increase the Project Loan Facility (the "Facility") from US$80 million to US$90 million for the RDM Mine. As previously reported (see press release dated January 12, 2012) the Corporation had entered into price protection programs in the form of currency swaps for the Project's CAPEX (R$1.90 to $US1.00) and OPEX (R$1.983 to $US1.00) as well as a gold price protection program comprised of 216,600 ounces of gold (approximately 26% of the open pit reserves) at a price of US$1,600 per ounce.-- On January 11, 2013 the Corporation, through its wholly owned subsidiary, Mineracao Riacho dos Machados ("MRDM") and Macquarie Bank signed the definitive Facility Agreement. The Facility Agreement is a five-year agreement with standard commercial terms as is customary in agreements of this nature. Subject only to interest breakage costs, the Corporation may repay the Facility at any time, with no adverse penalties. In consideration for increasing in the Facility and extending the completion guarantee date for the Gold Purchase and Sales Agreement (see press release of May 5, 2010) the Corporation has granted Macquarie Bank 20 million common share purchase warrants at an exercise price of $0.40 per warrant for a period of three years, as well as a call option on an additional 10,000 ounces of gold at $2,000 per ounce for a three year period.-- In 2012, the Corporation spent approximately US$66 million on the RDM Mine development. In 2013, the Corporation will fund approximately an additional US$10 million from its current treasury and then use the net proceeds from the US$90 million Facility Agreement for the construction and development of the RDM Mine.-- In 2012, the Corporation spent approximately US$10.0 million on the Rovina Valley Project to fund the various drilling programs, resource update, Pre-Feasibility study and technical studies for the mining license application and social programs.
